Producing Oil on CAVU Resources' Chisholm Lease
July 26 2013 - 10:04AM
Marketwired
CAVU Resources, Inc. (OTC Pink: CAVR) today announced it is
producing oil again on the Chisholm lease.
Two wells have been in operation 24/7 for nearly a week and have
been producing oil at a rate of approximately 25 barrels per day.
This production rate has been slowly increasing every day. Though
this rate is below our projections, we have purposely been running
the pumps at 1/2 the maximum operating level to test the system and
prevent any damage to the wells and equipment. Once we get the
third well into operation we plan to gradually increase the pump
speeds to achieve the optimum operating flow rate. We are very
happy with how the project is performing now at this consistent
flow rate. Billy Robinson, CAVU President, stated, "This level of
production, if maintained for the next 12 months, after royalties
and taxes, should produce approximately $1/2 million in annual cash
flow for the 88% owned CAVU Resources Two, LP. We have dealt with
weather, delayed equipment and contractor delivery and operations
to complete the replacement of old equipment that was idle for
nearly a year. We believe we did things right and the project is
proving to be more effective with lower maintenance and operating
costs than it previously operated at."
CAVU CEO Louis Silver offered, "We have been addressing the
opportunities and issues that face CAVU in a diligent manner, and
we will have more to say in subsequent releases. We are building
production and cash flow. As we continue to seek new revenue
producing opportunities, our next area of focus will be some
targeted production acquisitions and the FILO SWDW project
development in Kansas."
About CAVU Resources, Inc.
CAVU was formed with the goal of becoming a
recognized regional player in the independent oil and natural gas
industry by growing the company's oil and natural gas reserves.
CAVU is a natural resource company engaged in the acquisition,
exploration and development of oil and natural gas properties. The
Company operates in the upstream segment of the oil and gas
industry with planned activities including the drilling, completion
and operation of oil and gas wells in Oklahoma, Texas, Kansas and
Louisiana. CAVU's operating subsidiary, CAVU Energy Services, Inc.,
licensed Oil and Gas Operating Company manages the company's
properties in Oklahoma with plans to operate targeted leases in
Texas, Kansas and Louisiana. More information is available at the
company's website at http://www.cavu-resources.com.
Cautionary note: This report contains
forward-looking statements, particularly those regarding cash flow,
capital expenditures and investment plans. Resource estimates,
unless specifically noted, are considered speculative. By their
nature, forward-looking statements involve risk and uncertainties
because they relate to events and depend on factors that will or
may occur in the future. Actual results may vary depending upon
exploration activities, industry production, commodity demand and
pricing, currency exchange rates, and, but not limited to, general
economic factors. Cautionary Note to U.S. investors: The U.S.
Securities and Exchange Commission specifically prohibits the use
of certain terms, such as "reserves" unless such figures are based
upon actual production or formation tests and can be shown to be
economically and legally producible under existing economic and
operating conditions.
Contacts: CAVU Resources, Inc. William Robinson Chairman
Louis Silver CEO 302 east 10th Street Tulsa, OK 74120
Email: info@cavu-resources.com Website: www.cavu-resources.com
855-766-4695
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